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He is a mentally disturbed taxi driver who kidnaps the film's protagonist (played by Cosby) and goes on a wild ride across several city blocks while declaring his worship of Satan.
The madman continues to drive madly until Cosby claims to be Satan himself and convinces the driver to stop : however in the process the driver crashes off a bridge and apparently kills Cosby (in reality Cosby is put in a coma).
The Taxi Driver returns at the end of the movie, somehow still employed and still as insane as ever but this time loyal to Cosby (who he still believes is Satan).